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As a result the first and last “peak trains” have seats to spare, while the preceding and following services are bursting at the seams.

“Rather than having fares rise or fall dramatically, we think the movements should be more subtle,” said a Whitehall source.

“This would discourage the situation where you can have an evening train packed to the rafters five minutes after another service had scores of empty seats.”

The proposed changes are intended to be “revenue neutral” with the amount raised from higher off peak fares being balanced by the reductions in the price of some rush hour tickets.

These changes are most likely to apply to fares charged to passengers who make occasional trips to and between major cities.

Other initiatives are being considered for commuters including the introduction of “smart season tickets” which, like the Oyster Card in London, would offer discounts for travelling outside the rush hour.

Unlike current season tickets, passengers would not be charged for days in which they do not travel.

The review will also aim to simplify the current fare arrangements, which have left passengers baffled.

Sir Roy, who found that the rail industry is up to 40 per cent more expensive to run than its continental counterparts, has called on train operators to find other sources of income to boost their revenue.

He will call for the building of 10,000 new car parking spaces at stations which, Sir Roy estimates, could raise £38 million over the next five years.

Sir Roy will call for the industry to shed £1 billion a year from its annual £5.2 billion running costs, a demand which is likely to trigger a showdown with the rail unions.

Those working in the rail industry have seen their salaries increase by more than 30 per cent, double the rate of the rest of the economy.

At the same time the number or people working in the industry has risen from 81,000 to 92,000, although the increase has been underpinned by soaring demand for rail travel.

Mr Hammond has warned without efficiency improvements fares could have to rise or services cut.

“Ensuring that Britain’s railways become affordable for passengers and taxpayers will need everyone in the industry to work together,” Mr Hammond said.

“A 21st century rail network needs 21st century employment practices – from the board room to the shop floor.”

Privately some industry sources talk of “Spanish practices”, which they blame for the high operating costs of the country’s railways.

Abuses include train operators being forced to pay 12 hours overtime to persuade drivers to work three.

Another operator has been forced to hire 21 new drivers to cover for the five minutes additional walking time between the train and the staff mess room.

Bob Crow, warned ministers the industry could face a wave of strikes if the Government tries to force through cuts.

“It is crystal clear from the leaks and briefings doing the rounds that the Government are clearing the tracks for a massive assault on rail jobs, ticket offices and drivers pay and conditions while the train operators are allowed to carry on robbing the network of hundreds of millions of pounds in profits and subsidies.,” he said.

“We will fight this attack on jobs safety and service quality every step of the way and will continue to campaign for the publicly owned rail option in the UK that is proven to be thirty per cent cheaper and more efficient once the drive for profits is stripped out.”